Vizhinjam Port Signs Key Agreement to Fast-Track Development of Major Transshipment Hub

 This significant step, unveiled in a ceremony attended by Kerala Chief Minister Pinarayi Vijayan and Port Minister V.N. Vasavan, marks a pivotal moment in the project’s journey. Under the revised agreement, the second and final phase of the Vizhinjam port project is now set to be completed by 2028—17 years earlier than the original timeline. This ambitious deadline unlocks a substantial investment of Rs 10,000 crore over the next four years, positioning the port as a key player in the global transshipment market. Once fully operational, Vizhinjam is expected to handle 3 million twenty-foot equivalent units (TEUs), marking it as one of India’s largest and most strategically important maritime hubs.

The port’s development has faced multiple delays due to the pandemic and severe natural disasters, which forced a five-year extension of the original project timeline. However, the new agreement ensures that the port’s capacity expansion will proceed at an expedited pace. As part of the deal, APSEZ has committed to completing the second phase by 2028 in exchange for the resolution of arbitration disputes and a five-year extension of the concession period, now set to run until 2060. As part of the revised agreement, the Kerala government has also agreed to condone delays in the completion of the port’s first phase, which is now expected to be finished by December 2024. The first phase includes the construction of an 800-meter quay capable of handling 8 lakh TEUs annually, marking a significant step towards realizing the full potential of the port.

The new agreement not only expedites the port’s construction but also clears the path for additional funding deals, including a critical tripartite agreement between Adani Vizhinjam Port, lead banks, and the Department of Economic Affairs. These partnerships are expected to play a vital role in ensuring the timely completion of the port and its ability to attract international shipping traffic.

 “The establishment of Vizhinjam as a global transshipment hub will elevate India’s maritime capabilities, and the investment in infrastructure will have lasting benefits for the state and nation alike,” said a Kerala government spokesperson…As the port project moves forward with its revised timelines and funding framework, all eyes will be on Vizhinjam as it becomes a key component of India’s maritime infrastructure. Once completed, the port will play a critical role in expanding India’s capacity to handle transshipment cargo and facilitate smoother trade flows across the world.

With its modern facilities, strategic location, and robust investment backing, Vizhinjam is poised to become a central hub in global shipping, strengthening India’s position as a rising maritime power. The new agreement between Adani Vizhinjam Port and the Kerala government represents not just a milestone in the project’s development, but a giant leap for India’s aspirations to become a major player in global trade and shipping.